Fewer Iowans have filed their individual income tax returns with the state this year compared to last.
That means fewer refunds have been issued according to the Legislative Services Agency “and that, in turn, means state revenue likely looks better at the end of February than is really the case.”
Experts had predicted personal income tax payments to the state would be grow seven percent in the current state budgeting year. But over the past eight months the increase is less than six percent. There are other cautionary notes from the latest report on state finances. State sales tax receipts were up just one percent in February, so consumer spending isn’t increasing much.